07-27-15 EDA Mtg AgendaP
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
ECONOMIC DEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS
MONDAY, JULY 27, 2015 7:30 PM, or Immediately following
Regular City Council Meeting
AGENDA
1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING
A. Roll Call
President Zerby _____
Labadie _____
Siakel _____
Sundberg _____
Woodruff _____
B. Review Agenda
2. APPROVAL OF MINUTES
A. EDA Minutes of September 8, 2014 (Att.- Minutes)
3. CONSENT
A. Treasurer’s Report (Att.- Treasurer’s report)
4. NEW BUSINESS
A. Selection of Officers (Att.- Executive Director’s memorandum)
B. Approval of a Resolution Requesting the City of Shorewood Levy a Tax for the Benefit of
the Economic Development Authority (Att. – Executive Director’s memorandum)
5. ADJOURN
#2A
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
ECONOMIC DEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS
MONDAY, SEPTEMBER 8, 2014 Immediately following Regular City
Council Meeting
MINUTES
1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING
President Zerby called the meeting to order at 8:18 P.M.
A. Roll Call
Present. President Zerby; Boardmembers Hotvet, Siakel, and Woodruff; Executive
Director/Secretary Joynes; Attorney Keane; and, Assistant Executive Director Nielsen
Absent: Boardmember Sundberg
B. Review Agenda
Siakel moved, Woodruff seconded, approving the agenda as amended. Motion passed 4/0.
2. APPROVAL OF MINUTES
A. EDA Minutes of August 25, 2014
Siakel moved, Hotvet seconded, approving the EDA Meeting Minutes of August 25, 2014, as
presented. Motion passed 3/0/1 with Woodruff abstaining due to his absence at the meeting.
3. NEW BUSINESS
A. Option to Purchase Agreement with Real Estate Holding JD LLC
Attorney Keane explained that during its meeting on August 25, 2014, the Shorewood Economic
Development Authority (EDA) Board approved a Letter of Intent to Option Agreement with Real Estate
Holdings JD LLC. Mr. Steve Sloan, the sole proprietor, has reviewed the terms in the Option Agreement by
and between the Shorewood EDA and Real Estate Holdings JD. (A copy of the Agreement was included in
the meeting packet.) The document is an integrated purchase agreement and option that sets forth all of the
terms of the exercise so that no further documentation would be required in the event the EDA exercises its
option to purchase the property located at 5660 County Road 19 sometime in the next ten years at a
stipulated price. The purchase does require one year notice to the owner of the property. If the northwest
quadrant of the Smithtown Crossing and County Road 19 intersection were to be redeveloped that property
could be made available as part of that assemblage. A master developer could come in knowing that there is
a fixed price for that parcel in the assemblage.
President Zerby noted staff has been working hard on this effort which would allow the Shorewood EDA to
purchase the land. Hopefully, having the Agreement in place will help ignite some redevelopment in that
quadrant. That potential redevelopment has been studied for quite some time.
CITY OF SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY MEETING
September 8, 2014
Page 2 of 2
Boardmember Woodruff noted that in Item 10.4 Condition of Property “… Section 10, Option…” in the
first sentence should be changed to “… Section 10, Optionee …”.
Woodruff asked if Exhibit A List of Permitted Exceptions was intentionally left blank. Attorney Keane
responded yes and explained that staff has requested the title work from Mr. Sloan but it had not been
submitted before the meeting packet for this meeting was assembled. Once that is received it will be
incorporated into the Agreement. Woodruff then asked if a revision would have to be approved by the
Board to incorporate the exceptions. Keane explained the exceptions anticipated would be easements of
records, possibly the disclosure of a mortgage and maybe a few other items. Woodruff also asked if there
would have to be a signed addendum or if there should be a comment on the Exhibit A page saying it was
left intentionally left blank. Woodruff noted that he would be nervous about signing a blank page. Keane
noted that he would not incorporate an exception that did violence to the integrity of the Agreement. Keane
stated the Agreement can be brought back to the Board for consideration on September 22 once the EDA
has the title work if that is the Board’s preference.
President Zerby stated he is comfortable approving and signing the document as presented. He noted
Exhibit B Surveyor’s Certificate has some blanks that will need to be filled in once that information is
received.
Boardmember Siakel stated because Attorney Keane is okay with the Board approving the document at this
time then she is also.
Boardmember Woodruff stated the base price for the parcel of land would be the assessed market value of
the property on January 2, 2015. That priced can be adjusted by a change in the assessed market value
between now and ten years from now. He then stated it is not the EDA’s intention to purchase the property
and then donate it to someone. If the EDA purchased the property it would be to resell it to a developer.
Attorney Keane stated in the event there is an assemblage of land the master developer knows what the
price will be.
Woodruff moved, Siakel seconded, approving the Option Agreement by and between Real Estate
Holdings JD LLC and the Shorewood Economic Development Authority. Motion passed 4/0.
4. ADJOURN
Woodruff moved, Siakel seconded, Adjourning the Shorewood Economic Development Authority
Meeting of September 8, 2014, at 8:28 P.M. Motion passed 4/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
Scott Zerby, President
ATTEST:
William S. Joynes, Executive Director
MEETING TYPE
AnnualMeeting
City of Shorewood Economic Development Authority
Title / Subject: Treasurer's Report
Meeting Date: July 27, 2015
Prepared by: Bruce DeJong
Reviewed by: Bill Joynes
The Economic Development Authority bylaws require a Treasurer's report at the annual meeting. This
report is presented to fulfill that requirement.
The EDA is listed as a component unit of the City of Shorewood in the annual financial report. The
activities of the EDA were limited to receipt of lease revenues and payment of bond debt service.
The Economic Development Authority (EDA) of the City was created in 2001 to carry out economic and
industrial development and redevelopment consistent with policies established by the Council. Its board
is comprised of members of the City Council. The EDA activities are blended with the city's annual
financial report and separate financial statements are not issued for this component unit.
Revenue bonds outstanding at December 31, 2014 are as follows:
Outstanding
Issue
Maturity
Balance
Public Safety Fire Facility, 2007A
02/01/23
$ 2,960,000
Public Safety Police Facility, 20076
02/01/23
3,075,000
Public Safety Fire Facility, 20070
02/01/22
1,065,000
Public Project Bonds, 2008A
12/01/28
1,035,000
Total Lease Revenue Bonds
$ 8,135,000
The Year to Date Balance Sheet for each of these funds is attached.
The EDA has no separate assets at this time and all moneys in the bond funds are reserved for future
debt service. There is one parcel of property at 24620 Smithtown Road, purchased by the City of
Shorewood, which is held for resale in the name of the Shorewood EDA for future redevelopment
purposes in conjunction with Smithtown Crossing plans. This property can be found in the financial
records for Fund 450 — Community Infrastructure Fund.
Mission Statement: The City of Shorewood is committed to providing residents quality public services, a
healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial
management through effective, efficient, and visionary leadership.
Fund ALFRE
Account Type
Amount
307 - 2007A EDA Debt - W Fire
Assets
Cash
15,220.18
Accounts Receivable
6,441.00
Notes Receivable
2,960,000.00
Total Assets: 2,981,661.18
Liabilities
Accounts Payable
0.00
Deferred Revenues
2,960,000.00
Bonds Payable - Current
0.00
Total Liabilities: 2,960,000.00
Fund Balance
Unrestricted Fund Balance (12,061.82)
Restricted 14,602.00
Total Fund Balance: 2,540.18
Total Liabilities and Fund Balance: 2,962,540.18
Total Retained Earnings: 6,491.00
Total Fund Balance and Retained Earnings: 9,031.18
Total Liabilities, Fund Balance, and Retained Earnings: 2,969,031.18
Totals for Fund 307 - 2007A EDA Debt - W Fire: 12,630.00
GL - Balance Sheet (712312015 - 2 :15 PM) Page 1
Fund ALFRE
Account Type
Amount
308 - 2007B E'DA Debt - Police
Assets
Cash
4,977.41
Notes Receivable
3,075,000.00
Due From Other
6,441.00
Total Assets: 3,086,418.41
Liabilities
Accounts 'Payable
0.00
Deferred Revenues
3,075,000.00
Bonds Payable - Current
0.00
Total Liabilities: 3,075,000.00
Fund Balance
Unrestricted Fund Balance (12,066.59)
Restricted 4,364.00
Total Fund Balance: (7,702.59)
Total Liabilities and Fund Balance: 3,067,297.41
Total Retained Earnings: 6,491.00
Total Fund Balance and Retained Earnings: (1,211.59)
Total Liabilities, Fund Balance, and Retained. Earnings: 3,073,788.41
"Totals for Fund 308 - 2007B EDA Debt - Police: 12,630.00
GL - Balance Sheet (7/23/2015 - 2:16 PM) Page I
Fund ALFRE
Account Type
Amount
309 - 2007C EDA Debt - E Fire
Assets
Cash
2,889.28
Notes Receivable
1,065,000.00
Due From Other
1,516.00
Total Assets: 1,069,405.28
Liabilities
Accounts Payable
0.00
Deferred Revenues
1,065,000.00
Bonds Payable - Current
0.00
Total Liabilities: 1,065,000.00
Fund Balance
Unrestricted Fund. Balance (2,405.59)
Restricted 2,270.87
Total Fund Balance: (134.72)
Total Liabilities and Fund Balance: 1,064,865.28
Total Retained Earnings: 1,566.00
Total Fund Balance and Retained Earnings: 1,431.28
Total Liabilities, Fund Balance, and Retained Earnings: 1,066,431.28
Totals for Fund 309 - 2007C EDA Debt - E Fire: 2,974.00
GL - Balance Sheet (7/2312015 - 2:16 PM) Page 1
General Ledger
Balance Sheet
User: bdejong
Printed: 07/23/2015 - 2:16PM
RMShorewood
City of
Fund: 310
Period: 6
Fiscal Year: 2015
Fund ALFRE
Account Type
Amount
310 - 2008 EDA Debt - City Hall
Assets
Cash
(20,538.11)
Notes Receivable
0.00
Total Assets:
(20,538.11)
Liabilities
Accounts Payable
0.00
Deferred Revenues
0.00
Bonds Payable - Current
0.00
Total Liabilities:
0.00
Fund Balance
Unrestricted Fund Balance (495.00)
Restricted 3,213.14
Total Fund Balance: 2,718.14
Total Liabilities and Fund Balance: 2,718.14
Total Retained Earnings: (23,256.25)
Total Fund Balance and Retained Earnings: (20,538.11)
Total Liabilities, Fund Balance, and Retained Earnings: (20,538.11)
Totals for Fund 310 - 2008 EDA Debt - City Hall: 0.00
GL - Balance Sheet (7/23/2015 - 2:16 PM) Page 1
#4A
SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY
5755 Country Club Road
Shorewood, MN 55331-8926
952-960-7900 FAX: 952-474-0128
MEMORANDUM
MEETING DATE:
July 27, 2015
TO:
EDA Board of Commissioners
FROM:
William S. Joynes, Executive Director
Brad Nielsen, Assistant Executive Director
RE:
Selection of Officers
The Selection of Officers was made at the EDA’s meeting on July 28, 2014. The EDA By-Laws state
the positions of Vice President and Treasurer shall be members of the Board and shall be elected at
the annual meeting. The By-Laws further state that no commissioner may serve as President and
Vice President at the same time.
The Officers appointed at the July 28, 2014, meeting included:
Vice-President – Richard Woodruff (Presides in the absence of the President). The Board may
determine who shall serve as Vice-President.
President Pro-Tem – Appointed to serve in the absence of both the President and Vice-President. The
Board decided to leave this position vacant. If the Board wishes to fill this position, it will
need to select someone for it.
Treasurer – Debbie Siakel (The Treasurer shall receive and be responsible for Authority money, etc.
(The Board may determine who shall serve as Treasurer).
The Bylaws state the following shall serve as Officers:
President – Scott Zerby (The President shall be the Mayor of the City of Shorewood).
Assistant Treasurer – Bruce DeJong (The Assistant Treasurer shall be the Director of Finance).
Secretary – William Joynes (The Secretary shall be the City Administrator).
Executive Director – William Joynes (The Executive Director shall be the City Administrator).
Assistant Executive Director – Brad Nielsen (The Assistant Executive Director shall be the Director
of Planning).
Action Needed:
The Board will need to determine who shall be appointed to serve as Vice-President, President Pro-
Tem (if the Board determines to fill this position), and Treasurer.
#4B
SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY
5755 Country Club Road
Shorewood, Minnesota 55331-8926
952-960-7900FAX: 952.474.0128
M E M O R A N D U M
Title / Subject:EDA Levy
Meeting Date:
July 27, 2015
From:
Bill Joynes
As discussed at our last retreat, the City will likely face a number of requests to its Economic
Development Authority (EDA) for active participation and possible funding assistance for various
housing projects targeted for senior populations. Four possible locations have been discussed and
staff has been approached by three different developers.
Currently the City’s EDA has no financial resource to allow it to become operational. Minnesota
State Statutes (469.033) allow the City to levy taxes to support EDA activity up to an amount equal to
.0185% of city-wide estimated market value. The calculation for Shorewood equates to about
$250,000.
That total amount is not needed at this time but we would recommend the EDA request a levy of
approximately $50,000 or a 1.0% tax increase to fund anticipated activities including legal work and
consulting services that may arise as we contemplate our involvement in upcoming projects. As
projects proceed it is likely that the EDA could be reimbursed for all or a portion of these
expenditures.
SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 15-
A RESOLUTION REQUESTING THE CITY OF SHOREWOOD LEVY A TAX FOR
THE BENEFIT OF THE ECONOMIC DEVELOPMENT AUTHORITY
WHEREAS,
Minnesota Statutes 469.033 provides for the City, at the request of the
Economic Development Authority, to levy a tax for the benefit of the Economic Development
Authority;
WHEREAS,
the tax must not be more than 0.0185 percent of estimated market value;
WHEREAS,
the tax must be paid by the City Treasurer to the Economic Development
Authority Treasurer;
NOW, THEREFORE, BE IT RESOLVED BY THE ECONOMIC
DEVELOPMENT AUTHORITY OF SHOREWOOD AS FOLLOWS:
1.Pursuant to Minnesota Statute 469.033, the Economic Development Authority
(EDA) requests the City of Shorewood to adopt a resolution to levy a tax for the
benefit of the Economic Development Authority; and
2.The EDA requests a tax levy in the amount of approximately $50,000 or
approximately 1.0 percent tax increase of total estimated market value to be paid
by the City Treasurer to the Treasurer of the EDA.
ADOPTED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF
th
SHOREWOOD
this 27 day of July 2015.
Scott Zerby, President
ATTEST:
William S. Joynes, Executive Director
4840-9496-5541.1